The Minister of National Economy and Finance spoke for a reduction of taxes in connection with the crackdown on tax evasion Kostis Hatzidakis in his speech at the 22nd Conference of Financial Directors on “Modern CFO- Strategy, Innovation, Leadership” organized by KPMG, adding that the message of citizens in the European elections is not immobility and a return to deficits.

In particular, the minister presented six policy axes for an even more competitive economy, pointing out that after the European elections the vast majority of citizens and businesses expect the government to become even more effective in all areas of government policy: Security, Health, Justice and, of course, the Economy.

“In the last five years, we have seen very positive performances: With strong growth rates multiple times the European average, an increase in investments and exports, a boost in employment. At the same time, however, there is no doubt that the pace of implementing the right economic policy mix that I am talking about can be accelerated even further. It would be a huge mistake to consider that the citizens’ message to the government was to stand still or return to the times of deficits and statism,” he noted.

In this context, the main pillars of economic policy include:

  1. Further reduction of non-salary costs and taxation, in order to strengthen the international competitiveness of businesses and the economy. “We have committed to reducing insurance contributions by half an additional unit from 1/1/2025 and by one in total by the end of the four years. While we are also preparing a bill that will provide tax incentives for research and development activities that promote innovation,” he said. He underlined, at the same time, that the possibilities for tax reductions are inextricably linked to the fight against tax evasion, with a package of 11 different measures that is being implemented quickly and without derogations and it is estimated that in its full implementation by 2027 it will generate additional revenues of the order of 2 .5 billion euros on an annual basis.
  2. Strengthening and improving the functioning of the financial system so that businesses have access to finance. “We will continue to work to further reduce bad loans, both in the banks’ portfolios and in the economy as a whole. We have passed a provision for the possibility of operating non-banking institutions, which can give, not only consumer, but also housing and some forms of business loans. At the same time, we will intensify the effort to strengthen competition in the banking system by creating the so-called 5th pillar. And in the near future we will bring to vote a bill for the modernization of the capital market so that companies have even more options for raising funds”, said Mr. Hatzidakis.
  3. Optimum utilization of the funds of the Recovery Fund and the NSRF. The aim is to support the productive transformation of businesses and the economy in general, with an emphasis on the areas of green and digital transition, innovation, the development of economies of scale and extroversion.
  4. Business growth, by encouraging mergers and acquisitions, and supporting innovation. “By presumption, larger firms are more internationally competitive, offer better quality and better paying jobs, and have an increased capacity to invest and innovate. We are therefore moving in the coming months to simplify the fragmented and fragmented legislative framework for mergers which includes decades-old laws,” he said.
  5. Utilization of public property. Mr. Hatzidakis made special reference to the draft law presented yesterday for the adoption of a new, more modern governance model for the Superfund and its subsidiaries, and the establishment of an Investment Fund, for the creation of which the Superfund will initially allocate 300 million euros. The Investment Fund, as he said, will place special emphasis on sectors that are not sufficiently covered but have added value for the economy, thus having a significant impact on the social and economic development of the country. He also reminded that in the last 11 months, 10 privatizations and concession contracts were completed, which brought to the public coffers revenues of 7.1 billion euros.
  6. Fiscal stability, which will also be reflected in the country’s Fiscal Structural Plan, which will be submitted within the next few months. “Not only because this is what the new EU fiscal rules require. But because we know that healthy public finances are a prerequisite for everything else and that fiscal populism is detected and immediately punished by the markets”, emphasized Mr. Hatzidakis and concluded:

“Over the last five years, the Greek economy has emerged as a pleasant surprise for Europe. And this is because we implemented ambitious reforms – regardless of the political cost – that brought concrete results: an increase in investment and exports, a reduction in unemployment, high growth rates. Our patriotic duty is to continue this effort, not to compromise with populism, not to repeat the mistakes of the past and to move steadily forward on the path of reforms, common sense and success for our country. Populists are never a solution for any society, they are an additional problem, The difficult road may have temporary reactions, but it leads to results. The government is determined to move forward so that the efforts of the last five years and the sacrifices of the Greek citizens do not go to waste. And let’s all climb even higher together.”